Donald Trump delays tariff war with Canada

Premier Danielle Smith called on Trudeau and her fellow premiers to drop ‘further talk of retaliatory measures’ in favour of normalized relations with the United States.

U.S. President Donald Trump walked back his tariff threat against Canada—at least for the time being. He was inaugurated as the 47th President of the United States of America earlier Monday afternoon.

As reported by CBC News, three options are on the table, including a 10% tariff on all exports or an escalating tariff that increases over time. On November 25, 2024, Trump threatened to tariff all Canadian exports at 25%.

In his inaugural address to Congress, Trump only mentioned tariffs in passing, instead focusing on overhauling American trade to “protect American workers and families.” In part, tariffs are part of the president’s economic strategy to usher in “a golden age of America.”

Meanwhile, Prime Minister Justin Trudeau and his allied premiers are prepared to impose retaliatory tariffs should Trump proceed. They would levy a surcharge on more than $37 billion worth of American goods.

Finance Minister Dominic LeBlanc was encouraged by the absence of tariffs Monday afternoon, and will soon meet with his American counterpart, Howard Lutnick, Trump's incoming commerce secretary.

“Perhaps he’s made the decision to sort of suspend the threat of tariffs, we’ll wait and see,” LeBlanc said. “Our job is to make sure we're ready for every scenario.”

He will continue to lobby America that a tariff war with Canada does not serve its interests. “We think there’s a strong case to be made.”

Alberta Premier Danielle Smith, the lone dissenter among her colleagues last week, was in Washington to welcome Trump as president. She also welcomed the reprieve.

“He’s given Canada a reprieve and we’ll see how long that lasts,” Smith told the state broadcaster.

“We appreciate the implied acknowledgement that this is a complex and delicate issue,” she added in a statement, “with serious implications for American and Canadian workers, businesses and consumers given the integration of our markets, along with our critical energy and security partnership.”

Smith called on Trudeau and her fellow premiers to drop “further talk of retaliatory measures” for normalized relations once again. The advice follows threats of export tariffs on oil exports from Alberta, which the premier rejected outright.

Trudeau and the other 12 premiers are considering “every tool in the toolbox” amid threats of economic annexation by President Trump. They agreed that no one region or sector would suffer at the expense of others.

“Avoiding tariffs will save hundreds of thousands of Canadian and American jobs across every sector,” claimed Smith. “As an example, declining to impose U.S. tariffs on Canadian energy preserves the viability of dozens of U.S. refineries and facilities that upgrade Alberta crude, and the jobs of tens of thousands of Americans employed at them.”

Smith called on Ottawa to immediately repeal all federal anti-energy policies, including the production cap, Clean Electricity Regulations, and Impact Assessment Act, as well as fast track pre-approvals for both the Northern Gateway and Energy East pipeline projects.

She also urged all provinces to double down on border security and for the federal government to accelerate NATO spending targets.

“Within the next month,” Smith said, “all border provinces should either by themselves, or in partnership with the federal government, deploy the necessary resources to secure our shared border from illegal drugs and migration.”

“There is no excuse for further delay,” she said about Canada’s defence spending.

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Alex Dhaliwal

Calgary Based Journalist

Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.

COMMENTS

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  • Howard Mirkin
    commented 2025-01-21 11:02:10 -0500
    There are tariff barriers to free trade and NON-TARIFF BARRIERS (NTB) to free trade. Open borders are NTB. How can Canada and the USA minimize or eliminate the NTB to avoid tariffs as long as the globalist/communist party runs the Canadian government? Could the announcements of tariffs cause a crisis that causes the globalist/communist government of Canada to fall apart and open the gates for freedom while closing the gates to illegal activities? If one were to re4ad Henry Hazlitt’s book, “Economics in One Lesson”, one would find that there are some justifications for protective tariffs. There is a document whose words seem to apply to this situation: “…When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation”. Of course this is part of the United States’ Declaration of Independence. Do the Canadian western provinces want to be forever at offs with those who want to control them? It might just be that it is time.
  • Bernhard Jatzeck
    commented 2025-01-20 20:35:58 -0500
    That must disappoint Trudeau as he now has nothing to divert attention from his misdeeds.